H.R. 4790 – Reading Mode

109th CONGRESS

2d Session

H. R. 4790

IN THE HOUSE OF REPRESENTATIVES

February 16, 2006

Mr. Herger (for himself, Mr. Chocola, Mr. Lewis of Kentucky, and Mrs. Musgrave) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to expand expensing for small business.

Short title

This Act may be cited as the Small Business Expensing Permanency Act of 2006.

Increased expensing for small business made permanent

(a)

In general

Paragraph (1) of section 179(b) of the Internal Revenue Code of 1986 (relating to dollar limitation) is amended by striking $25,000 ($100,000 in the case of taxable years beginning after 2002 and before 2008) and inserting $200,000.

(b)

Increase in qualifying investment at which phaseout begins

Paragraph (2) of section 179(b) of such Code (relating to reduction in limitation) is amended by striking $200,000 ($400,000 in the case of taxable years beginning after 2002 and before 2008) and inserting $800,000.

(c)

Rebasing of inflation adjustments

Section 179(b)(5)(A) of such Code (relating to inflation adjustments) is amended—

(1)

in the matter preceding clause (i) by striking 2003 and before 2008, the $100,000 and $400,000 and inserting 2007, the $200,000 and $800,000, and

(2)

in clause (ii) by striking calendar year 2002 and inserting calendar year 2006.

(d)

Revocation of election made permanent

Section 179(c)(2) of such Code (relating to election irrevocable) is amended by striking and before 2008.

(e)

Off-the-Shelf computer software

Section 179(d)(1)(A)(ii) of such Code (relating to section 179 property) is amended by striking and before 2008.

(f)

Effective date

The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2006.